Personnel and Pensions Committee
Filed: 11/20/2008
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1 | AMENDMENT TO SENATE BILL 1985
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2 | AMENDMENT NO. ______. Amend Senate Bill 1985 by replacing | ||||||
3 | everything after the enacting clause with the following: | ||||||
4 | "Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Sections 14-119 and 14-121 as follows:
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6 | (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
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7 | Sec. 14-119. Amount of widow's annuity.
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8 | (a) The widow's annuity shall be 50% of the amount of | ||||||
9 | retirement annuity
payable to the member on the date of death | ||||||
10 | while on retirement if an
annuitant, or on the date of his | ||||||
11 | death while in service if an employee,
regardless of his age on | ||||||
12 | such date, or on the date of withdrawal if death
occurred after | ||||||
13 | termination of service under the conditions prescribed in
the | ||||||
14 | preceding Section.
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15 | (b) If an eligible widow, regardless of age, has in her | ||||||
16 | care any
unmarried child or children of the member under age 18 |
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1 | (under age 22 if a
full-time student), the widow's
annuity | ||||||
2 | shall be increased in the amount of 5% of the retirement | ||||||
3 | annuity
for each such child, but the combined payments for a | ||||||
4 | widow and
children shall not exceed 66 2/3% of the member's | ||||||
5 | earned
retirement annuity.
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6 | The amount of retirement annuity from which the widow's
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7 | annuity is derived shall be that earned by the member without | ||||||
8 | regard to
whether he attained age 60 prior to his withdrawal | ||||||
9 | under the conditions
stated or prior to his death.
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10 | (c) Marriage of a child shall render the child ineligible | ||||||
11 | for further
consideration in the increase in the amount of the | ||||||
12 | widow's annuity.
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13 | Attainment of age 18 (age 22 if a full-time student)
shall | ||||||
14 | render a child ineligible for
further consideration in the | ||||||
15 | increase of the widow's annuity, but the
annuity to the widow | ||||||
16 | shall be continued thereafter, without regard to
her age at | ||||||
17 | that time.
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18 | (d) Except as otherwise provided in this subsection (d), a | ||||||
19 | A widow's annuity payable on account of any covered employee | ||||||
20 | who
has shall have been a covered employee for at least 18 | ||||||
21 | months shall be reduced
by 1/2 of the amount of survivors | ||||||
22 | benefits to which his beneficiaries are
eligible under the | ||||||
23 | provisions of the Federal Social Security Act, except
that (1) | ||||||
24 | the amount of any widow's annuity payable under this Article | ||||||
25 | shall
not be reduced by reason of any increase under that Act | ||||||
26 | which occurs after
the offset required by this subsection is |
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1 | first applied to that annuity,
and (2) for benefits granted on | ||||||
2 | or after January 1, 1992, the offset under
this subsection (d) | ||||||
3 | shall not exceed 50% of the amount of widow's annuity
otherwise | ||||||
4 | payable.
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5 | Beginning July 1, 2009, the offset under this subsection | ||||||
6 | (d) shall no
longer be applied to any widow's annuity of any | ||||||
7 | person who began receiving retirement benefits or a widow's | ||||||
8 | annuity prior to January 1, 1998.
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9 | Beginning July 1, 2009, the offset under this subsection | ||||||
10 | (d) shall no longer be applied to the widow's annuity of any | ||||||
11 | person who began receiving a widow's annuity on or after | ||||||
12 | January 1, 1998 and before the effective date of this | ||||||
13 | amendatory Act of the 95th General Assembly. | ||||||
14 | Any person who began receiving retirement benefits after | ||||||
15 | January 1, 1998 and before the effective date of this | ||||||
16 | amendatory Act of the 95th General Assembly may, during a | ||||||
17 | one-time election period established by the System, elect to | ||||||
18 | reduce his or her retirement annuity by 3.825% in exchange for | ||||||
19 | not having the offset under this subsection (d) applied to his | ||||||
20 | or her widow's annuity. | ||||||
21 | Any employee in service on the effective date of this | ||||||
22 | amendatory Act of the 95th General Assembly may, at the time of | ||||||
23 | retirement, elect to reduce his or her retirement annuity by | ||||||
24 | 3.825% in exchange for not having the offset under this | ||||||
25 | subsection (d) applied to his or her widow's annuity. | ||||||
26 | If a widow's annuity is payable to the widow of an employee |
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1 | based on the employee's death in service, then the offset under | ||||||
2 | this subsection (d) shall no longer be applied to the widow's | ||||||
3 | annuity. | ||||||
4 | A retiree who elects to reduce his or her retirement | ||||||
5 | annuity under this subsection (d) in exchange for not having | ||||||
6 | the offset applied may make an irrevocable election to | ||||||
7 | eliminate the reduction of his or her retirement annuity if | ||||||
8 | there is a change in marital status due to death or divorce, | ||||||
9 | but the retiree is not entitled to reimbursement of any benefit | ||||||
10 | reduction prior to the election. | ||||||
11 | (e) Upon the death of a recipient of a widow's annuity the | ||||||
12 | excess, if
any, of the member's accumulated contributions plus | ||||||
13 | credited interest over
all annuity payments to the member and | ||||||
14 | widow, exclusive of the $500 lump
sum payment, shall be paid to | ||||||
15 | the named beneficiary of the widow, or if
none has been named, | ||||||
16 | to the estate of the widow, provided no reversionary
annuity is | ||||||
17 | payable.
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18 | (f) On January 1, 1981, any recipient of a widow's annuity | ||||||
19 | who was receiving
a widow's annuity on or before January 1, | ||||||
20 | 1971, shall have her widow's annuity
then being paid increased | ||||||
21 | by 1% for each full year which has elapsed from
the date the | ||||||
22 | widow's annuity began. On January 1, 1982, any recipient
of a | ||||||
23 | widow's annuity who began receiving a widow's annuity after | ||||||
24 | January
1, 1971, but before January 1, 1981, shall have her | ||||||
25 | widow's annuity then
being paid increased by 1% for each full | ||||||
26 | year which has elapsed from the
date the widow's annuity began. |
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1 | On January 1, 1987, any recipient of a
widow's annuity who | ||||||
2 | began receiving the widow's annuity on or before January
1, | ||||||
3 | 1977, shall have the monthly widow's annuity increased by $1
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4 | for each full year which has elapsed since the date the
annuity | ||||||
5 | began.
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6 | (g) Beginning January 1, 1990, every widow's annuity shall | ||||||
7 | be
increased (1) on each January 1 occurring on or after the | ||||||
8 | commencement
of the annuity if the deceased member died while | ||||||
9 | receiving a retirement
annuity, or (2) in other cases, on each | ||||||
10 | January 1 occurring on or after
the first anniversary of the | ||||||
11 | commencement of the annuity, by an amount
equal to 3% of the | ||||||
12 | current amount of the annuity, including any previous
increases | ||||||
13 | under this Article. Such increases shall apply without regard | ||||||
14 | to
whether the deceased member was in service on or after the | ||||||
15 | effective date
of Public Act 86-1488, but shall not accrue for | ||||||
16 | any period prior to January
1, 1990.
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17 | (Source: P.A. 95-279, eff. 1-1-08.)
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18 | (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
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19 | Sec. 14-121. Amount of survivors annuity. A survivors | ||||||
20 | annuity
beneficiary shall be entitled upon death of the member | ||||||
21 | to a single sum
payment of $1,000, payable pro rata among all | ||||||
22 | persons entitled thereto,
together with a survivors annuity | ||||||
23 | payable at the rates and under the
conditions specified in this | ||||||
24 | Article.
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25 | (a) If the survivors annuity beneficiary is a spouse, the |
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1 | survivors
annuity shall be 30% of final average compensation | ||||||
2 | subject to a maximum
payment of $400 per month.
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3 | (b) If an eligible child or children under the care of a | ||||||
4 | spouse also
survives the member, such spouse as natural | ||||||
5 | guardian of the child or
children shall receive, in addition to | ||||||
6 | the foregoing annuity, 20% of final
average compensation on | ||||||
7 | account of each such child and 10% of final average
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8 | compensation divided pro rata among such children, subject to a | ||||||
9 | maximum
payment on account of all survivor annuity | ||||||
10 | beneficiaries of $600 per month,
or 80% of the member's final | ||||||
11 | average compensation, whichever is the lesser.
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12 | (c) If the survivors annuity beneficiary or beneficiaries | ||||||
13 | consists of
an unmarried child or children, the amount of | ||||||
14 | survivors annuity shall be
20% of final average compensation to | ||||||
15 | each child, and 10% of final average
compensation divided pro | ||||||
16 | rata among all such children entitled to such annuity,
subject | ||||||
17 | to a maximum payment to all children combined of $600 per month
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18 | or 80% of the member's final average compensation, whichever is | ||||||
19 | the lesser.
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20 | (d) If the survivors annuity beneficiary is one or more | ||||||
21 | dependent parents,
the annuity shall be 20% of final average | ||||||
22 | compensation to each parent and
10% of final average | ||||||
23 | compensation divided pro rata among the parents who
qualify for | ||||||
24 | this annuity, subject to a maximum payment to both dependent
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25 | parents of $400 per month.
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26 | (e) The survivors annuity to the spouse, children or |
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1 | dependent parents of
a member whose death occurs after the date | ||||||
2 | of last withdrawal, or after
retirement, or while in service | ||||||
3 | following reentry into service after
retirement but before | ||||||
4 | completing 1 1/2 years of additional creditable
service, shall | ||||||
5 | not exceed the lesser of 80% of the member's earned
retirement | ||||||
6 | annuity at the date of death or the maximum previously
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7 | established in this Section.
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8 | (f) In applying the limitation prescribed on the combined | ||||||
9 | payments to
2 or more survivors annuity beneficiaries, the | ||||||
10 | annuity on account of each
beneficiary shall be reduced pro | ||||||
11 | rata until such time as the number of
beneficiaries makes the | ||||||
12 | reduction no longer applicable.
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13 | (g) Except as otherwise provided in this subsection (g), a | ||||||
14 | survivors annuity payable on account of
any covered employee | ||||||
15 | who has
shall have been a covered employee for at
least 18 | ||||||
16 | months at date of death or last withdrawal, whichever is the | ||||||
17 | later,
shall be reduced by 1/2 of the survivors benefits to | ||||||
18 | which his beneficiaries
are eligible under the federal Social | ||||||
19 | Security Act, except that (1) the
survivors annuity payable | ||||||
20 | under this Article shall not be reduced by any
increase under | ||||||
21 | that Act which occurs after the offset required by this
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22 | subsection is first applied to that annuity, (2) for benefits | ||||||
23 | granted on or
after January 1, 1992, the offset under this | ||||||
24 | subsection (g) shall not exceed
50% of the amount of survivors | ||||||
25 | annuity otherwise payable.
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26 | Beginning July 1, 2009, the offset under this subsection |
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1 | (g) shall no
longer be applied to any survivors annuity of any | ||||||
2 | person who began receiving retirement benefits or a survivors | ||||||
3 | annuity prior to January 1, 1998.
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4 | Beginning July 1, 2009, the offset under this subsection | ||||||
5 | (g) shall no longer be applied to the survivors annuity of any | ||||||
6 | person who began receiving a survivors annuity on or after | ||||||
7 | January 1, 1998 and before the effective date of this | ||||||
8 | amendatory Act of the 95th General Assembly.
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9 | Any person who began receiving retirement benefits after | ||||||
10 | January 1, 1998 and before the effective date of this | ||||||
11 | amendatory Act of the 95th General Assembly may, during a | ||||||
12 | one-time election period established by the System, elect to | ||||||
13 | reduce his or her retirement annuity by 3.825% in exchange for | ||||||
14 | not having the offset under this subsection (g) applied to his | ||||||
15 | or her survivors annuity. | ||||||
16 | Any employee in service on the effective date of this | ||||||
17 | amendatory Act of the 95th General Assembly may, at the time of | ||||||
18 | retirement, elect to reduce his or her retirement annuity by | ||||||
19 | 3.825% in exchange for not having the offset under this | ||||||
20 | subsection (g) applied to his or her survivors annuity. | ||||||
21 | If a survivors annuity is payable to the widow of an | ||||||
22 | employee based on the employee's death in service, then the | ||||||
23 | offset under this subsection (g) shall no longer be applied to | ||||||
24 | the survivors annuity. | ||||||
25 | A retiree who elects to reduce his or her retirement | ||||||
26 | annuity under this subsection (g) in exchange for not having |
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1 | the offset applied may make an irrevocable election to | ||||||
2 | eliminate the reduction of his or her retirement annuity if | ||||||
3 | there is a change in marital status due to death or divorce, | ||||||
4 | but the retiree is not entitled to reimbursement of any benefit | ||||||
5 | reduction prior to the election. | ||||||
6 | (h) The minimum payment to a beneficiary hereunder shall be | ||||||
7 | $60 per month,
which shall be reduced in accordance with the | ||||||
8 | limitation prescribed on the
combined payments to all | ||||||
9 | beneficiaries of a member.
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10 | (i) Subject to the conditions set forth in Section 14-120, | ||||||
11 | the minimum
total survivors annuity benefit payable to the | ||||||
12 | survivors annuity beneficiaries
of a deceased member or | ||||||
13 | annuitant whose death occurs on or after January
1, 1984, shall | ||||||
14 | be 50% of the amount of retirement annuity that was or would
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15 | have been payable to the deceased on the date of death, | ||||||
16 | regardless of the
age of the deceased on such date. If the | ||||||
17 | minimum total benefit provided
by this subsection exceeds the | ||||||
18 | maximum otherwise imposed by this Section,
the minimum total | ||||||
19 | benefit shall nevertheless be payable. Any increase in
the | ||||||
20 | total survivors annuity benefit resulting from the operation of | ||||||
21 | this
subsection shall be divided among the survivors annuity | ||||||
22 | beneficiaries of
the deceased in proportion to their shares of | ||||||
23 | the total survivors annuity
benefit otherwise payable under | ||||||
24 | this Section.
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25 | (j) Any survivors annuity beneficiary whose annuity | ||||||
26 | terminates due to any
condition specified in this Article other |
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1 | than death shall be entitled to
a refund of the excess, if any, | ||||||
2 | of the accumulated contributions of the
member plus credited | ||||||
3 | interest over all payments to the member and beneficiary
or | ||||||
4 | beneficiaries, exclusive of the single sum payment of $1,000, | ||||||
5 | provided
no future survivors or reversionary annuity benefits | ||||||
6 | are payable.
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7 | (k) Upon the death of the last eligible recipient of a | ||||||
8 | survivors
annuity the excess, if any, of the member's | ||||||
9 | accumulated contributions plus
credited interest over all | ||||||
10 | annuity payments to the member and survivors
exclusive of the | ||||||
11 | single sum payment of $1000, shall be paid to the named
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12 | beneficiary of the last eligible survivor, or if none has been | ||||||
13 | named, to
the estate of the last eligible survivor, provided no | ||||||
14 | reversionary annuity
is payable.
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15 | (l) On January 1, 1981, any survivor who was receiving a | ||||||
16 | survivors
annuity on or before January 1, 1971, shall have his | ||||||
17 | survivors annuity then
being paid increased by 1% for each full | ||||||
18 | year which has elapsed from the
date the annuity began. On | ||||||
19 | January 1, 1982, any survivor who began receiving
a survivor's | ||||||
20 | annuity after January 1, 1971, but before January 1, 1981,
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21 | shall have his survivor's annuity then being paid increased by | ||||||
22 | 1% for each
full year that has elapsed from the date the | ||||||
23 | annuity began.
On January 1, 1987, any survivor who began | ||||||
24 | receiving a survivor's annuity
on or before January 1, 1977, | ||||||
25 | shall have the monthly survivor's annuity
increased by $1 for | ||||||
26 | each full year which has elapsed since the date the
survivor's |
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1 | annuity began.
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2 | (m) Beginning January 1, 1990, every survivor's annuity | ||||||
3 | shall be increased
(1) on each January 1 occurring on or after | ||||||
4 | the commencement of the annuity if
the deceased member died | ||||||
5 | while receiving a retirement annuity, or (2) in
other cases, on | ||||||
6 | each January 1 occurring on or after the first anniversary
of | ||||||
7 | the commencement of the annuity, by an amount equal to 3% of | ||||||
8 | the current
amount of the annuity, including any previous | ||||||
9 | increases under this Article.
Such increases shall apply | ||||||
10 | without regard to whether the deceased member
was in service on | ||||||
11 | or after the effective date of Public Act 86-1488,
but shall | ||||||
12 | not accrue for any period prior to January 1, 1990.
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13 | (Source: P.A. 86-273; 86-1488; 87-794.)
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14 | Section 99. Effective date. This Act takes effect upon | ||||||
15 | becoming law.".
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